Professor Caroline Dale Ditlev-Simonsen recently introduced a new step-by-step process in how to succeed in corporate social responsibility.
Tell me about the roots of the term «corporate social responsibility».
– Limited resources have always been an issue. However, since industrialization
and mass production, the negative social and environmental impact of doing business has become increasingly evident. The introduction of television and social media has made oil-spills and child labor instantly visible across the world. Skepticism and criticism towards corporations have been the result. In response to this, the interest in the concept of corporate social responsibility has increased tremendously. We can’t really go on damaging the environment, depleting resources and not respect the basic rights related to working conditions.
When exactly did it become something academics studied?
– The Brundtland Commission, led by former Norwegian prime minister Gro Harlem Brundtland, came up with the modern term in their report from 1987: «Sustainable development». That was a real kick-starter. Of course, this wasn’t the first time anybody had thought about these issues. There were people pondering these questions back in the 1920’s and 1950’s. While it is often claimed that the Nobel Economic prize winner Milton Friedman was against corporate social responsibility in his famous article in The New York Times in 1970, «The Social Responsibility of Business is to Increase Its Profits», I think he is misinterpreted. Today, in order to make money, companies absolutely have to think about sustainability. Acting responsibly is profitable – if you do it right. What Friedman was against was corporate philanthropy based on corporate
managers’ personal preferences and that companies should take on governmental responsibilities.
Corporate responsibility is not the same thing as being involved in philanthropy?
– No. Giving money to causes and charities that have nothing to do with your actual business is all well and good, of course. But this is about acting responsibly in what you actually do every day. Like, if you need to package the goods you make, why not use the least possible amount of packaging materials, in order to make the process cheaper, more effective and make the product less expensive to ship? Why not decrease waste and utilize LED light bulbs and save energy and cost in the long term?
Like you said: «Profitable – if you do it right».
– Yes. Some people might find that ethically suspect: «Acting responsible in order to save money? Shouldn’t you do it just to be nice?». Well, if you don’t earn money, you won’t be in a position to be nice. All companies are concerned about thinking ahead,and a lot of them talk a good game. Surprisingly many of them, however, don’t have a clue about how to actually deal with the question of corporate responsibility. It’s not enough to have one lonely soul in your organization, a sole Director of Corporate Social Responsibility, who is tasked with accomplishing this more or less on her own. And yes, it’s often a female employee! Thinking about these problems and solutions needs to be a part of your overall strategy, from financing to marketing to HR and information.
Feeling good about what you do and the place you work is not to be sneezed at either, is it?
– It’s very important, and increasingly so! My students are very, very concerned about this, far more than previous generations. I mean, they’re interested in earning money. But they’re also far more invested in the idea that your job is a big part of your identity as a human being.
Are the young more willing to change behavior as well?
– Now that’s the big question. As of now: Not really. Which makes it even more important that businesses can take the lead in changing behavior.
We’ve been conditioned to think that buying stuff equals happiness.
– We usually look at a country’s gross national product and equate it with happiness. But is that really so? Why is it then, that the countries that usually sit atop The World Happiness Index, also tops the statistics when it
comes to anti-depressants? It’s very interesting to see how we value different
things in different cultures.
Does the term «corporate social responsibility» mean different things in different parts of the world too?
– It does. In some countries, it might have to do with the fight against child labor. In another it might be associated with the Volkswagen scandal, in which one of the world’s most respected companies was caught cheating with their emission technologies. This led to a major drop in brand value. It also led to a major drop in share prices.
You have developed a five-point model that you gave a TED Talk
about recently.
– Map, test, launch, implement, report. Find out what it is you can do. The program has to be anchored in and be endorsed by top management. Then you should put together a group from across the company, with representatives from all departments. Use the United Nations’ checklist – the SDG’s – and find out which goals are most relevant for your particular company. Develop a plan with concrete targets. Present these plans to customers, suppliers, environmental organizations. Ask for input, revise accordingly. Launch the plan and make sure the employees, across the company, are onboard with it. Make it part of their day-today work life. Implement: Follow it through. Are you reaching your goals? If not – why not? Unexpected things will happen. Learn from them. Finally: Report. Be accountable. Be transparent and honest. What worked, what didn’t work? Continue.